Profiling Latin American tourists to South Africa:
The case of Wilderness Safaris
Wilhelm Zietsman Snyman
12867292
BA Tourism Management Honours
Dissertation submitted in fulfilment of the requirements for the
degree
Magister Artium
in Tourism Management at the
Potchefstroom Campus of the North-West University
Supervisor:
Prof Martinette Kruger
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Acknowledgements
“A man who is a master of patience is master of everything else” – George Savile Looking back on the last three years of full time work and part time study, one thing that came to mind was the word patience. This attribute and I have become one through the grace of my Father whom I would like to thank first and foremost for giving me the strength to believe that everything is obtainable by working hard and having patience. Through His grace I have also received great support from unbelievable individuals all of whom have played an integral part in helping me to complete this life goal:
Thanks to Prof. Martinette Kruger who has been a good friend long before becoming my study leader. Her continuous believe and support in me gave me the motivation to start this study and to press through when things lost pace. She has been a great academic role model in having achieved so much at such a young age and words cannot describe how grateful I am for her guidance over the last three years. She is truly the best!
Thanks to the love of my life, my fiancé, best friend and soon to be wife, Nadia. You are my life and thank you for supporting me through everything. I cannot wait to be married to you and grow old together.
Appreciations to my ever hard working parents, Izak and Rika for showing me that hard work is the key to any success in life, whether for personal or professional goals. I am also thankful to my two brothers, Izak and Ruan for their support, protection and
guidance of their “klein boet”.
My sincere gratitude to Wilderness Safaris and especially Caroline Palazzo, Zelda Bisschoff, Tammy Goodwin, Jaques Momberg and Carli Flemmer for their support in this study.
My appreciation to Dr. Suria Ellis for her great input on the statistical part of my study. Thanks to Armand Viljoen from TREES (Tourism Research in Economic Environs &
Society) for designing the online questionnaire in Adobe® FormsCentral.
Thanks to Elmari Snoer for the language editing of my dissertation. Being on last minute standby is truly appreciated.
A warm thank you to the rest of my family and friends who have supported me through this process.
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Abstract
Profiling Latin American tourists to South Africa: The case of Wilderness Safaris
Tourism growth to South Africa is in decline leading to less overseas travel from Europe, United States of America and Australasia. These developed economies are Wilderness Safaris and South Africa’s main source markets in terms of overseas tourists. This has resulted in an emphasis shift to identify new markets to offset the slowdown in tourism growth. An emerging market that has been identified with great potential turns out to be Latin America. Consequently, the key aspects that have been identified to drive this study are set out below:
The uniqueness of the Latin American market makes it important to research aspects such as: Who are the Latin American tourists to South Africa and Wilderness Safaris? Why do they travel to South Africa? Which areas do they visit in the country? Why did they choose Wilderness Safaris as their inbound tour operator?
Current research on the Latin American tourists derives mostly from countries such as Australia and New Zealand, but also includes studies from the World Tourism Organisation.
To the best of the author’s knowledge no other study in South Africa has focused on profiling Latin American tourists and their travel motives.
There is currently limited data and information available regarding the Latin American tourists traveling to South Africa. With the increased growth in this market, it becomes imperative to research this market through market segmentation.
Based on the brief introduction, the main purpose of this study was to profile the Latin American tourists that travel to South Africa and Wilderness Safaris. To achieve this goal, an online questionnaire was sent to Latin American tour operators and travel agents. Only tour operators and travel agents that have an active working relationship with Wilderness Safaris were selected. In turn, the Latin American tour operators and travel agents distributed the questionnaire to their customers. A total of 195 completed questionnaires were returned from places across the Latin American region. All 195 completed questionnaires were used in this study. A literature study was done to define tourism marketing, its context within eco-tourism, the benefits thereof as well as the use and implementation of market segmentation. An in-depth literature study was also done on the Latin American tourist, comparing them with the current tourist profile of South Africa and Wilderness Safaris. Literature was also consulted to compare the Latin American tourist with South Africa as an international competitive destination. Through
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the use of an empirical survey it became clear that there were various motives for the Latin American tourists choosing South Africa as destination and Wilderness Safaris as tour operator. A variety of data analyses were used in this study such as descriptive data, factor analyses, cluster analysis, t-tests, ANOVAs and Spearman’s Rank Order Correlations. Descriptive analysis allowed the researcher to create a profile on the Latin American tourist to South Africa and Wilderness Safaris. The cluster analysis based on the identified motives revealed four distinct segments of Latin American tourists to South Africa, each resembling distinct preferences that need to be catered for. The t-tests, ANOVAs and Spearman’s Rank Order Correlations indicated that a variety of socio-demographic and behavioural characteristics influenced Latin American travel motives. Results indicated that the Latin American market was not homogenous and recommendations were made on differences in the market. This study makes a valuable contribution to the current tourism marketing literature by expanding current knowledge on the profile and motives of a, to date, relatively unknown tourist market.
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Uittreksel
Die profiel samestelling van Latyns-Amerikaanse toeriste na Suid-Afrika: Die geval van Wilderness Safaris
Die groei in toerisme na Suid-Afrika in terme van oorsese besoekers vanaf Europa, die Verenigde State van Amerika en Australasië toon al meer ‘n afname. Hierdie ontwikkelde ekonomieë is die kern markte in terme van oorsese besoekers na Wilderness Safaris en Suid-Afrika. Die afname in besoeke vanaf hierdie kern markte het daartoe gelei dat al meer klem geplaas is op die identifisering van nuwe markte vir toerisme ten einde die afname te kan teëwerk. Die Latyns-Amerikaanse mark is as ‘n opkomende mark wat blyk groot potensiaal te hê, geïdentifiseer. In die verband lei die volgende kernaspekte die navorsingstudie:
Die uniekheid van die Latyns-Amerikaanse mark noodsaak navorsing van die volgende aspekte: Wie is die Latyns-Amerikaanse toeriste na Suid-Afrika en Wilderness Safaris? Hoekom toer hulle na Suid-Afrika? Watter areas van die land besoek hulle? Hoekom het hulle Wilderness Safaris as hulle inkomende toer-operateur gekies?
Tans is navorsing oor Latyns-Amerikaanse toeriste slegs vanuit Australië en Nieu-Seeland gegenereer, maar sluit ook studies van die Wêreld Toerisme Organisasie in. Tot die beste van die navorser se kennis, is daar geen ander studie in Suid-Afrika wat
fokus op die profiel samestelling van Latyns-Amerikaanse toeriste en hul motivering om te reis nie.
Tans is beperkte data en inligting beskikbaar rakende Latyns-Amerikaanse toeriste wat na Suid-Afrika reis en is dit noodsaaklik om navorsing oor hierdie mark deur middel van marksegmentering, te doen.
Met die oog op die bogenoemde, is die hoofdoel van hierdie studie om ‘n profiel samestelling te doen op die Latyns-Amerikaanse toeriste wat na Suid-Afrika en Wilderness Safaris reis. Om hierdie doel te bereik is ‘n aanlyn-vraelys na Latyns-Amerikaanse toer-operateurs en reisagente uitgestuur. Slegs toer-operateurs en reisagente wat ‘n werksverhouding met Wilderness Safaris het, is geselekteer wat op hul beurt weer die vraelys na hul kliënte vir voltooiing aangestuur het. ‘n Totaal van 195 voltooide vraelyste is terug ontvang van regoor die Latyns-Amerikaanse streek en is in hierdie navorsingstudie gebruik. ‘n Literatuurstudie is gedoen om die bemarking van toerisme, die konteks van toerisme binne ekotoerisme, die voordele daarvan sowel as die gebruik en implementering van marksementering te definieer en te bespreek. ‘n In-diepte literatuurstudie is ook oor die Latyns-Amerikaanse toeris gedoen. Hul is met huidige toeriste en Suid-Afrika as ‘n internasionale mededingende bestemming vergelyk. ‘n Empiriese ondersoek
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het bevestig dat daar verskeie motiewe bestaan as redes vir die Latyns-Amerikaanse toeriste om Suid-Afrika as hul bestemming te kies, en Wilderness Safaris as hul toeroperateur. ‘n Verskeidenheid van data ontledingsmetodes is gebruik soos beskrywende data-analise, faktorontleding, t-toetse, trosanalise, ANOVAs en Spearman se Rangorde Korrelasies. Beskrywende data-analise het die navorser in staat gestel om ‘n profiel te skep van die Latyns-Amerikaanse toeris wat na Suid-Afrika en Wilderness Safaris reis. Die trosanalise op grond van die geïdentifiseerde motiverings faktore, het vier unieke segmente gewys – elke met spesifieke voorkeure wat aan voldoen moet word. Die t-toetse en ANOVAs het aanduiding gegee tot hoe ‘n mate sekere sosio-demografiese en gedragseienskappe van die Latyns-Amerikaanse toeriste hulle reis motiewe beïnvloed. Die resultate het verder aangedui dat die Latyns-Amerikaanse mark nie homogeen is nie, waarna aanbevelings op die geïdentifiseerde verskille gemaak is. Hierdie studie maak ‘n waardevolle bydrae tot die huidige toerismebemarkingsliteratuur deur die kennis rakende die profiel en motivering van ‘n, tot op hede, relatiewe onbekende mark te identifiseer.
Sleutelwoorde: Profiel samestelling, marksegmentering, bemarking, Wilderness Safaris en
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Table of Contents
CHAPTER 1: INTRODUCTION, PROBLEM STATEMENT, OBJECTIVES AND METHOD OF
RESEARCH ... 1
1.1 INTRODUCTON ... 1
1.2 BACKGROUND OF THE STUDY ... 3
Market segmentation as a profiling tool ... 3
An analysis of the Latin American market ... 5
1.3 PROBLEM STATEMENT ... 8
1.4 GOAL OF THE STUDY ... 8
Goal ... 8
Objectives ... 8
1.5 METHODOLOGY ... 9
Literature study ... 9
Empirical survey ... 9
1.6 DEFINING THE CONCEPTS ... 13
Profiling ... 13
Market segmentation ... 13
Wilderness Safaris ... 13
Latin America ... 14
1.7 CHAPTER CLASSIFICATION ... 14
CHAPTER 2: A LITERATURE OVERVIEW OF MARKET SEGMENTATION IN AN ECOTOURISM CONTEXT ... 16
2.1 INTRODUCTION ... 16
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2.3 UNDERSTANDING TOURISM MARKETING ... 17
2.4 MARKETING IN AN ECO-TOURISM CONTEXT ... 24
2.5 UNDERSTANDING MARKET SEGMENTATION ... 26
Defining market segmentation ... 27
Market segmentation process ... 29
Benefits of market segmentation ... 40
2.6 A synthesis of market segmentation within an eco-tourism context ... 42
2.7 CONCLUSION ... 45
CHAPTER 3: A LITERATURE REVIEW OF SOUTH AFRICA AS A TOURIST DESTINATION AND ITS APPEAL TO THE LATIN AMERICAN MARKET ... 46
3.1 INTRODUCTION ... 46
3.2 GLOBAL TRAVEL TRENDS ... 47
3.3 OVERVIEW OF SOUTH AFRICA’S COMPETTIVENESS AS AN INTERNATIONAL TOURISM DESTINATION ... 49
SWOT ANAYLISIS ON SOUTH AFRICA AS A TOURISM DESTINATION ... 51
OVERVIEW OF TOP INTERNATIONAL ARRIVALS TO SOUTH AFRICA ... 58
3.4 ANALYSIS OF THE LATIN AMERICAN REGION AND TRAVEL TRENDS ... 60
DEFINING THE LATIN AMERICAN REGION ... 61
KEY TOURIST DATA FROM BRAZIL ... 63
3.5 ANALYSIS ON WILDERNESS SAFARIS’ MAIN MARKETS ... 64
Trends in the high-end tourism industry in Africa according to Wilderness Safaris 65 Challenges in the high-end tourism industry in Africa according to Wilderness Safaris 66 3.6 CONCLUSION ... 68
CHAPTER 4: AN ASSESSMENT ON THE PROFILE AND MOTIVATION OF LATIN AMERICAN TOURISTS THAT TRAVEL TO SOUTH AFRICA AND WILDERNESS SAFARIS. ... 70
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4.1 INTRODUCTION ... 70
4.2 RESULTS OF THE DESCRIPTIVE INFORMATION ... 71
Language group ... 71 Gender ... 71 Age ... 72 Home language ... 72 Marital status ... 73 Country of residence ... 73 Level of education ... 74
Travel decision time period... 74
Main initiators for travelling to South Africa ... 75
Previous visits during the last four years ... 75
Duration of the most recent trip to South Africa ... 76
Number of people travelling in a group ... 76
Number of people paying for in a group... 77
Children or family accompanying on trip ... 77
Average spending ... 78
South African provinces visited or intended to visit ... 78
African countries visited or intended to visit ... 79
Other destinations considered apart from South Africa ... 80
Destinations previously visited ... 80
Annual travel frequency ... 81
Package type ... 81
Holiday type ... 81
Accommodation type ... 82
Activity type ... 83
Marketing vehicles ... 83
Main Latin American tour operators used ... 84
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Previous knowledge of Wilderness Safaris ... 85
4.3 RESULTS FROM THE FACTOR ANALYSES: MOTIVES TO TRAVEL TO SOUTH AFRICA AND WILDERNESS SAFARIS ... 86
Motives to travel to South Africa ... 86
Wilderness Safaris as a tour operator ... 90
4.4 RESULTS FROM THE CLUSTER ANALYSIS ... 91
Identified market segments ... 92
ANOVAs, Tukey’s post hoc multiple comparisons and effect sizes results ... 94
Cross-tabulations and chi-square test results ... 95
4.5 SUMMARY OF ADDITIONAL ANOVAS, T-TESTS AND SPEARMAN\S RANK ORDER CORRELATIONS ... 98
4.6 CONCLUSION ... 111
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS ... 113
5.1 INTRODUCTION ... 113
5.2 CONCLUSIONS ... 114
Conclusions with regard to the literature study ... 114
Conclusions from the survey ... 117
5.3 RECOMMENDATIONS FOR EXPANDING THE LATIN AMERICAN MARKET ... 120
Recommendations regarding the Latin American tourism market to South Africa and Wilderness Safaris... 120
5.4 RECOMMENDATIONS FOR FUTURE RESEARCH ... 130
5.5 CONTRIBUTION OF THE RESEARCH ... 131
LIST OF REFERENCES ... 132
APPENDIX A: ONLINE QUESTIONNAIRE ... 144
APPENDIX B : SIX COUNTRY SUMMER SPECIAL PACKAGE... 157
APPENDIX C: RESULTS OF T-TESTS, ANOVAS AND SPEARMAN’S RANK ORDER CORRELATIONS ... 158
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RESULTS OF THE T-TESTS: SOCIO-DEMOGRAPHIC AND MOTIVES TO SOUTH
AFRICA FACTORS ... 158
t-test comparison of gender and motives ... 158
t-test comparison of children / family accompanying respondents on their trip to South Africa and motives ... 160
t-test comparison of South African provinces respondents visited and motives ... 161
C.1.3.1 t-test comparison on the Western Cape Province and motives ... 161
C.1.3.2 t-test comparison on the Eastern Cape Province and motives ... 163
C.1.3.3 t-test comparison on the Northern Cape Province and motives ... 164
C.1.3.4 t-test comparison on the Free State Province and motives ... 166
C.1.3.5 t-test comparison on the Kwa-Zulu Natal Province and motives ... 166
C.1.3.6 t-test comparison on the Mpumalanga Province and motives ... 167
C.1.3.7 t-test comparison on the Limpopo Province and motives ... 169
C.1.3.8 t-test comparison on the Gauteng province and motives ... 170
C.1.3.9 t-test comparison on the North West Province and motives ... 171
t-test comparison on African countries respondents visited and motives ... 173
C.1.4.1 t-test comparison on Botswana and motives ... 173
C.1.4.2 t-test comparison on Malawi and motives ... 174
C.1.4.3 t-test comparison on Namibia and motives ... 176
C.1.4.4 t-test comparison on Mozambique and motives ... 177
C.1.4.5 t-test comparison on South Africa and motives ... 179
C.1.4.6 t-test comparison on Zambia and motives ... 180
C.1.4.7 t-test comparison on Zimbabwe and motives ... 181
C.1.4.8 t-test comparison on Lesotho and motives ... 183
C.1.4.9 t-test comparison on Swaziland and motives ... 184
t-test comparisons of alternative destinations respondents considered to travel to instead of South Africa and motives ... 186
C.1.5.1 t-test comparison on North America as alternative destination to South Africa and motives ... 186
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C.1.5.2 t-test comparison on Central and South America as alternative destination to South
Africa and motives ... 187
C.1.5.3 t-test comparison on Europe as alternative destination to South Africa and motives . ... 189
C.1.5.4 t-test comparison on Asia as alternative destination to South Africa and motives 190 C.1.5.5 t-test comparison on Australia and Pacific islands as alternative destination to South Africa and motives ... 192
t-test comparisons on other destinations respondents have already visited to and motives ... 193
C.1.6.1 t-test comparison on North America as a destination already visited by respondents and motives ... 193
C.1.6.2 t-test comparison on Central and South America as a destination already visited by respondents and motives ... 195
C.1.6.3 t-test comparison on Europe as a destination already visited by respondents and motives ... 196
C.1.6.4 t-test comparison on Asia as a destination already visited by respondents and motives ... 198
C.1.6.5 t-test comparisons on Australia and the Pacific islands as a destination already visited by respondents and motives ... 199
t-test comparison on the type of travel package arrangements respondents chose and motives ... 200
C.1.7.1 t-test comparison on packaged arrangements and motives ... 201
t-test comparison on respondents’ holiday type and motives ... 202
C.1.8.1 t-test comparison on safari type holiday and motives ... 202
C.1.8.2 t-test comparison on cultural type holiday and motives ... 202
C.1.8.3 t-test comparison on beach type holiday and motives ... 204
C.1.8.4 t-test comparison on sport and activity type holiday and motives ... 205
C.1.8.5 t-test comparison on festivals and events type holiday and motives... 207
C.1.8.6 t-test comparison on honeymoon type holiday and motives ... 208
t-test comparison on accommodation types and motives ... 209
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C.1.9.2 t-test comparison on Backpacker/Youth hostel and motives ... 210
C.1.9.3 t-test comparison on Rental house/Apartment and motives ... 211
C.1.9.4 t-test comparison on House of friend or relative and motives ... 212
C.1.9.5 t-test comparison on Bed and breakfast / Guesthouse and motives ... 214
t-test comparisons on type of activities and motives ... 215
C.1.10.1 t-test comparison on Outdoor/Nature and motives ... 215
C.1.10.2 t-test comparison on Outdoor/Sports and motives ... 216
C.1.10.3 t-test comparison on Arts/Heritage and motives ... 217
C.1.10.4 t-test comparison on Indigenous culture and motives ... 219
C.1.10.5 t-test comparison on Local tourist attractions and motives ... 220
C.1.10.6 t-test comparison on Social and motives ... 222
C.1.10.7 t-test comparison on Shopping and motives ... 223
t-test comparisons on marketing vehicles for South Africa and motives ... 224
C.1.11.1 t-test comparison on Website as a media vehicle for South Africa and motives .. 225
C.1.11.2 t-test comparison on Trade shows as a media vehicle for South Africa and motives . ... 226
C.1.11.3 t-test comparison on friends and family as a media vehicle for South Africa and motives ... 228
C.1.11.4 t-test comparison on Radio as a media vehicle for South Africa and motives ... 229
C.1.11.5 t-test comparison on Television as a media vehicle for South Africa and motives ... ... 230
C.1.11.6 t-test comparison on Magazines as a media vehicle for South Africa and motives .... ... 232
C.1.11.7 t-test comparison on Newspapers as a media vehicle for South Africa and motives . ... 233
C.1.11.8 t-test comparison on Travel agents as a media vehicle for South Africa and motives ... 235
C.1.11.9 t-test comparison on previous visits as a media vehicle for South Africa and motives ... 236
C.1.11.10 t-test comparison on Facebook as a media vehicle for South Africa and motives .. ... 238
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C.1.11.11 t-test comparison on Twitter as a media vehicle for South Africa and motives . 239
C.1.11.12 t-test comparison on Internet blogs as a media vehicle for South Africa and
motives ... 241
C.1.11.13 t-test comparison on Brochures and pamphlets as a media vehicle for South Africa and motives ... 242
t-test comparisons on choice of Latin travel agency/tour operator and motives ... 243
C.1.12.1 t-test comparison on Internet advertisement and motives ... 244
C.1.12.2 t-test comparison on trade show meeting and motives... 245
C.1.12.3 t-test comparison on Recommendations by family and friends and motives ... 246
C.1.12.4 t-test comparison on Internet search and motives ... 248
C.1.12.5 t-test comparison on Agency arranged previous trip and motives ... 249
C.1.12.6 t-test comparison on High level of service received and motives ... 251
C.1.12.7 t-test comparison on Service provided in home language and motives ... 252
C.1.12.8 t-test comparison on Virtuoso member and motives ... 253
t-test comparisons on marketing vehicles for Wilderness Safaris and motives ... 255
C.1.13.1 t-test comparison on Website as a marketing vehicle for Wilderness Safaris and motives ... 255
C.1.13.2 t-test comparison on trade shows as a marketing vehicle for Wilderness Safaris and motives ... 257
C.1.13.3 t-test comparison on Friends and family as a marketing vehicle for Wilderness Safaris and motives ... 258
C.1.13.4 t-test comparison on Radio as a marketing vehicle for Wilderness Safaris and motives ... 260
C.1.13.5 t-test comparison on Television as a marketing vehicle for Wilderness Safaris and motives ... 261
C.1.13.6 t-test comparison on Magazines as a marketing vehicle for Wilderness Safaris and motives ... 262
C.1.13.7 t-test on Newspapers as a marketing vehicle for Wilderness Safaris and motives .... ... 264
C.1.13.8 t-test comparison on Travel agents as a marketing vehicle for Wilderness Safaris and motives ... 265
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C.1.13.9 t-test comparison on previous visits as a marketing vehicle for Wilderness Safaris
and motives ... 267
C.1.13.10 t-test comparison on Facebook as a marketing vehicle for Wilderness Safaris and motives ... 268
C.1.13.11 t-test comparison on Twitter as a marketing vehicle for Wilderness Safaris and motives ... 270
C.1.13.12 t-test comparison on Internet blogs as a marketing vehicle for Wilderness Safaris and motives ... 270
RESULTS FROM THE ANOVAS ... 271
C.2.1 ANOVA results for Home language ... 271
C.2.2 ANOVA results of factors and marital status ... 277
C.2.3 ANOVA results of factors and country of residence ... 283
C.2.4 ANOVA results of factors and level of education ... 289
C.2.5 ANOVA results of factors and decision time period ... 294
C.2.6 ANOVA results of factors and travel initiator ... 299
RESULTS OF SPEARMAN’S RANK ORDER CORRELATIONS ... 304
C.3.1 Spearman’s rank order correlations between factors and questions ... 304
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List of Tables
CHAPTER 1: INTRODUCTION, PROBLEM STATEMENT, OBJECTIVES AND METHOD OF RESEARCH
Table 1.1: UNWTO forecast for outbound tourism from South America ... 6
Table 1.2: Dimensions of quantitative research ... 10
Table 1.3: Countries of Latin America ... 14
CHAPTER 2: A LITERATURE OVERVIEW OF MARKET SEGMENTATION IN AN ECOTOURISM CONTEXT Table 2.1: Marketing campaign techniques frequently used in tourism ... 22
Table 2.2: Four main methods of marketing ... 23
Table 2.3: Major segmentation variables ... 32
Table 2.4: Nature based tourist market profile ... 44
CHAPTER 3: A LITERATURE REVIEW OF SOUTH AFRICA AS A TOURIST DESTINATION AND ITS APPEAL TO THE LATIN AMERICAN MARKET Table 3.1: SWOT analysis of South Africa as a tourist destination ... 53
Table 3.2: Breakdown of Latin American tourist arrivals from 2011 to 2013 ... 61
Table 3.3: Profile of Latin American tourists’ to Europe ... 63
CHAPTER 4: AN ASSESSMENT ON THE PROFILE AND MOTIVATION OF LATIN AMERICAN TOURISTS THAT TRAVEL TO SOUTH AFRICA AND WILDERNESS SAFARIS Table 4.1: Number of people paying for in a group ... 77
Table 4.2: Average spend per trip... 78
Table 4.3: South African provinces visited or intended to visit ... 79
Table 4.4: African countries visited or intended to visit ... 79
Table 4.5: Other destinations considered apart from South Africa ... 80
Table 4.6: Destinations previously visited ... 80
Table 4.7: Package type ... 81
Table 4.8: Holiday type ... 82
Table 4.9: Accommodation type ... 82
Table 4.10: Activity type ... 83
Table 4.11: Marketing vehicles ... 83
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Table 4.13: Results of the factor analysis: Motives to travel to South Africa ... 87
Table 4.14: Descriptive statistics of individual factors ... 90
Table 4.15: Results of the factor analysis: Wilderness Safaris ... 91
Table 4.16: Results of ANOVA and Tukey’s post hoc multiple comparisons for motivational factors in the four clusters of Latin American respondents holistic ... 93
Table 4.17: Results of ANOVA, Tukey’s post, hoc multiple comparisons and effect sizes for visitor characteristics of segments ... 94
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS Table 5.1: Latin American respondent profile ... 118
APPENDIX C: RESULTS OF T-TESTS, ANOVAS AND SPEARMAN’S RANK ORDER CORRELATIONS Table C.1: t-test result of gender and motives ... 158
Table C.2: t-test results for children / family accompanying on trip to South Africa and motives ... 160
Table C.3: t-test comparison on the Western Cape Province and motives ... 161
Table C.4: t-test comparison on the Eastern Cape Province and motives... 163
Table C.5: t-test comparison on the Northern Cape Province and motives ... 164
Table C.6: t-test comparison on the Kwa-Zulu Natal Province and motives ... 166
Table C.7: t-test comparison on the Mpumalanga Province and motives ... 167
Table C.8: t-test comparison on the Limpopo Province and motives ... 169
Table C.9: t-test comparison on the Gauteng Province and motives ... 170
Table C.10: t-test comparison on the North West Province and motives... 171
Table C.11: t-test comparison on Botswana and motives ... 173
Table C.12: t-test comparison on Malawi and motives ... 174
Table C.13: t-test comparison on Namibia and motives ... 176
Table C.14: t-test comparison on Mozambique and motives... 177
Table C.15: t-test comparison on South Africa and motives ... 179
Table C.16: t-test comparison on Zambia and motives ... 180
Table C.17: t-test comparison on Zimbabwe and motives ... 181
Table C.18: t-test comparison on Lesotho and motives ... 183
Table C.19: t-test comparison on Swaziland and motives ... 184
Table C.20: t-test comparison on North America as alternative destination to South Africa and motives ... 186
Table C.21: t-test comparison on Central and South America as alternative destination to South Africa and motives ... 187
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Table C.22: t-test comparison on Europe as alternative destination to South Africa and motives
... 189
Table C.23: t-test comparison on Asia as alternative destination to South Africa and motives ... 190
Table C.24: t-test comparison on Australia and Pacific islands as alternative destination to South Africa and motives ... 192
Table C.25: t-test comparison on North America as a destination already visited by respondents and motives ... 193
Table C.26: t-test comparison on Central and South America as a destination already visited by respondents and motives ... 195
Table C.27: t-test comparison on Europe as a destination already visited by respondents and motives ... 196
Table C.28: t-test comparison on Asia as a destination already visited by respondents and motives ... 198
Table C.29: t-test comparisons on Australia and the Pacific islands as a destination already visited by respondents and motives ... 199
Table C.30: t-test comparison on packaged arrangements and motives ... 201
Table C.31: t-test comparison on cultural type holiday and motives ... 202
Table C.32: t-test comparison on beach type holiday and motives ... 204
Table C.33: t-test comparison on sport and activity type holiday and motives ... 205
Table C.34: t-test comparison on festivals and events type holiday and motives ... 207
Table C.35: t-test comparison on honeymoon type holiday and motives... 208
Table C.36: t-test comparison on Backpacker/Youth hostel and motives ... 210
Table C.37: t-test comparison on Rental house/Apartment and motives ... 211
Table C.38: t-test comparison on House of friend or relative and motives ... 212
Table C.39: t-test comparison on Bed and breakfast / Guesthouse and motives ... 214
Table C.40: t-test comparison on Outdoor/Sports and motives ... 216
Table C.41: t-test comparison on Arts/Heritage and motives ... 217
Table C.42: t-test comparison on Indigenous culture and motives ... 219
Table C.43: t-test comparison on Local tourist attractions and motives ... 220
Table C.44: t-test comparison on Social and motives ... 222
Table C.45: t-test comparison on Shopping and motives ... 223
Table C.46: t-test comparison on Website as media vehicle for South Africa and motives .. 225
Table C.47: t-test comparison on Trade shows as media vehicle for South Africa and motives ... 226
Table C.48: t-test comparison on friends and family as media vehicle for South Africa and motives ... 228
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Table C.49: t-test comparison on Radio as media vehicle for South Africa and motives ... 229
Table C.50: t-test comparison on Television as a media vehicle for South Africa and motives ... 230
Table C.51: t-test comparison on Magazines as a media vehicle for South Africa and motives ... 232
Table C.52: t-test comparison on Newspapers as a media vehicle for South Africa and motives ... 233
Table C.53: t-test comparison on Travel agents as a media vehicle for South Africa and motives ... 235
Table C.54: t-test comparison on Previous visits as a media vehicle for South Africa and motives ... 236
Table C.55: t-test comparison on Facebook as a media vehicle for South Africa and motives ... 238
Table C.56: t-test comparison on Twitter as a media vehicle for South Africa and motives .. 239
Table C.57: t-test comparison on Internet blogs as a media vehicle for South Africa and motives ... 241
Table C.58: t-test comparison on Brochures and pamphlets as a media vehicle for South Africa and motives ... 242
Table C.59: t-test comparison on Internet advertisement and motives ... 244
Table C.60: t-test comparison on Trade show meeting and motives ... 245
Table C.61: t-test comparison on Recommendations by family and friends and motives ... 246
Table C.62: t-test comparison on Internet search and motives ... 248
Table C.63: t-test comparison on Agency arranged previous trip and motives ... 249
Table C.64: t-test comparison on High level of service received and motives ... 251
Table C.65: t-test comparison on Service provided in home language and motives ... 252
Table C.66: t-test comparison on Virtuoso member and motives ... 253
Table C.67: t-test comparison on Website as a marketing vehicle for Wilderness Safaris and motives ... 255
Table C.68: t-test comparison on Trade shows as a marketing vehicle for Wilderness Safaris and motives ... 257
Table C.69: t-test comparison on Friends and family as a marketing medium for Wilderness Safaris and motives ... 258
Table C.70: t-test comparison on Radio as marketing vehicle for Wilderness Safaris and motives ... 260
Table C.71: t-test comparison on Television as a marketing vehicle for Wilderness Safaris and motives ... 261
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Table C.72: t-test comparison on Magazines as a marketing vehicle for Wilderness Safaris and motives ... 262 Table C.73: t-test on Newspapers as a marketing vehicle for Wilderness Safaris and motives ... 264 Table C.74: t-test comparison on Travel agents as marketing vehicle for Wilderness Safaris and motives ... 265 Table C.75: t-test comparison on Previous visits as a marketing vehicle for Wilderness Safaris and motives ... 267 Table C.76: t-test comparison on Facebook as a marketing vehicle for Wilderness Safaris and motives ... 268 Table C.77: t-test comparison on Internet blogs as a marketing vehicle for Wilderness Safaris and motives ... 270 Table C.78: ANOVA results of factors and home language ... 273 Table C.79: ANOVA results of factors and marital status ... 278 Table C.80: ANOVA results of factors and country of residence ... 284 Table C.81: ANOVA results of factors and level of education ... 290 Table C.82: ANOVA results of factors and decision time period ... 295 Table C.83: ANOVA result on Travel initiator ... 300 Table C.84: Spearman's rank order correlations on motivational factors and questions ... 309 Table C.85: Spearman's rank correlations on the motivational factors ... 321
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List of Figures
CHAPTER 1: INTRODUCTION, PROBLEM STATEMENT, OBJECTIVES AND METHOD OF RESEARCH
Figure 1.1: Steps in the market segmentation process ... 4
CHAPTER 2: A LITERATURE OVERVIEW OF MARKET SEGMENTATION IN AN ECOTOURISM CONTEXT
Figure 2.1: The marketing domain: phases of marketing ... 18 Figure 2.2: Three steps of segmentation selection ... 28 Figure 2.3: Variables in segmentation ... 29 Figure 2.4: Segmentation process ... 30 Figure 2.5: Mass marketing ... 37 Figure 2.6: Niche marketing... 38 Figure 2.7: Differentiated marketing ... 38 Figure 2.8: The positioning process ... 40 Figure 2.9: Eco-tourism as a market segment ... 43
CHAPTER 3: A LITERATURE REVIEW OF SOUTH AFRICA AS A TOURIST DESTINATION AND ITS APPEAL TO THE LATIN AMERICAN MARKET
Figure 3.1: International Tourist Arrivals for 2014 ... 47 Figure 3.2: The five most important aspects of South Africa's tourism product turning it into a globally competitive destination ... 51 Figure 3.3: International tourist arrivals for 2014 ... 59 Figure 3.4: Top overseas tourist arrivals for 2014 and 2013 ... 60 Figure 3.5: Breakdown of bed night contribution to Jao from February 2013 to January 2014 ... 67 Figure 3.6: Consumer nationalities visiting the Jao concession from February 2013 to January 2014 ... 68
CHAPTER 4: AN ASSESSMENT ON THE PROFILE AND MOTIVATION OF LATIN AMERICAN TOURISTS THAT TRAVEL TO SOUTH AFRICA AND WILDERNESS SAFARIS Figure 4.1: Language group ... 71 Figure 4.2: Gender ... 71
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Figure 4.3: Age ... 72 Figure 4.4: Home language ... 72 Figure 4.5: Marital status ... 73 Figure 4.6: Country of residence ... 73 Figure 4.7: Level of education ... 74 Figure 4.8: Travel decision time period ... 74 Figure 4.9: Main initiators for travel to South Africa ... 75 Figure 4.10: Previous visits during the last four years ... 75 Figure 4.11: Duration of the most recent trip to South Africa ... 76 Figure 4.12: Number of people travelling in a group ... 76 Figure 4.13: Children or family accompanying on trip ... 77 Figure 4.14: Annual travel frequency ... 81 Figure 4.15: Main tour operators / travel agencies used ... 84 Figure 4.16: Previous knowledge of Wilderness Safaris ... 86 Figure 4.17: Four cluster solution: Ward’s method with squared Euclidean distance measures ... 92
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List of maps
CHAPTER 3: A LITERATURE REVIEW OF SOUTH AFRICA AS A TOURIST DESTINATION AND ITS APPEAL TO THE LATIN AMERICAN MARKET
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1 CHAPTER 1: INTRODUCTION, PROBLEM STATEMENT,
OBJECTIVES AND METHOD OF RESEARCH
1.1 INTRODUCTON
According to Saayman and Saayman (2006:569), Faulkner, Moscardo and Laws (2001:xxviii) and UNWTO (World Tourism Organisation) (2015:2a; 2015:10b) international tourism is a rapid growing sector in many developing countries. This is due to an increased demand for travel as a result of the sector not just being one of the dominant systems of spending but also one of the leading export earners. With the dawn of air travel, high-volume tourism has become a reality and tourism has grown in popularity (Du Plessis, van der Merwe & Saayman, 2012:180; Awang, Hassan & Zahari, 2009:67; Narayan 2005:1157; Patterson, Niccolucci & Marchettini, 2008:407; UNWTO 2015:10; 2015:2). This is also the case in developing countries including South Africa. The World Travel and Tourism Council (WTTC) (2015:2) supports this and states that the travel and tourism industry in South Africa expanded with 185% between 1995 and 2014 in comparison to the total economy which only expanded with 80%. However, international tourism growth to South Africa from the top ten countries has declined from 2013 to 2014 according to a report that Statistic South Africa released (Stats SA) (2014:13). From the report it is evident that a total of 2 254 709 overseas tourists have travelled to South Africa in 2014 (Stats SA, 2014:34). The top ten countries contributing to the 2014 figure were: UK with 401 914 (17.8%) visitors followed by the United States of America (USA) at 309 255 (13.7%); Germany, 274 571 (12.2%); France, 131 502 (5.8%); The Netherlands, 131 287 (5.8%); Australia, 111 213 (4.9%); India, 85 639 (3.8%); China, 82 905 (3.7%); Canada, 60 544 (2.7%) and Italy, 58 605 (2.6%). Comparing the same statistics with 2013, all overseas countries, except for The Netherlands, have shown a decline in visitor numbers. China displayed the strongest fall with a decline of 45.1% compared to 2013, while the Netherlands’ visitors to South Africa has increased slightly with 8.7% compared to the previous year (2013).
Following on the afore-mentioned, the United Kingdom, Germany, United States of America, France, Netherlands and Australia are the most significant markets in terms of overseas tourists visiting South Africa. However, according to the World Bank Group (World Bank) (2015:36) there is a slower than expected recovery and economic growth from the Euro zone where the majority of overseas travellers to South Africa originate from. This is mainly due to the financial stress in Greece as well as the political tensions in the Ukraine. In order to counterbalance the slowdown of travellers from developed countries, new regions for growth
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in international tourism need to be identified. A region to consider, which show potential growth according to Palazzo (2013), is Latin America (Central and South America including Mexico) with a total of 65 118 tourists who have travelled to South Africa in 2014 (SA Tourism, 2015:37).
With these statistics in mind, Africa and South Africa have a rich diversity of world class destinations and products to offer visitors from the newly identified region. Products on offer to this market segment include luxury safari lodges situated in wildlife-rich areas, world class leading hotels on iconic beach fronts as well as a rich diversity of cultures and heritage experiences. In this regard a proactive approach would be to channel the travel industry through sustainable tourism which can act as a stimulant for nations and their people (Spenceley, 2010:10). A company that specialises in offering these iconic destinations and experiences in Africa is Wilderness Safaris. With operating camps and safaris in Botswana, Kenya, Namibia, Malawi, South Africa, Zambia, Zimbabwe and the Seychelles, Wilderness Safaris (2015) describes itself as a “responsible luxury ecotourism company that exists to
protect pristine wilderness areas and the flora and fauna they support”. Wilderness Safaris
already has a well established reputation in offering specialised safari products in their main sales markets of Europe and Australasia with their main focus being the United States of America. To recreate their success in the North American market and to offset the slowdown from the developed regions, Wilderness Safaris has expanded into the Latin American market. In the case of Wilderness Safaris, sales from the Latin American region showed a 12.3% growth in the 2013 financial year (01 March 2012 to 28 February 2013) compared to same period in the previous year. A total of ZAR10 796 565.00 in sales for the 2012 financial year (01 March 2011 to 29 February 2012) grew to ZAR12 125 886.00 in the 2013 financial year (01 March 2012 to 28 February 2013). Sales slowed down in the 2015 financial year (01 March 2014 – 28 February 2015) to ZAR12 318 949 with sales for the period March 2015 to June 2015 (as part of the 2016 financial year) reflecting a total of ZAR11 058 490 (Momberg, 2015). According to Palazzo (2013), the sales manager for Wilderness Safaris to the Latin American region, South Africa is still seen as an “exotic and high-end destination for the affluent societies
of the top sales producing markets of Brazil, Chile and Mexico”. She also states that their
(Brazil, Chile and Mexico) economies perform well and continue to grow. This means that tourists from those countries have more disposable income to spend on travelling to South Africa. Therefore, great potential for growth within this market exist. According Momberg (2015) Wilderness Safaris expect growth of 5% to 10% in this specific market for the 2016 financial year.
According to Du Plessis (2002:3), in the tourism industry, every country has to deal with the challenge that the “product” tourists seek, can be satisfied by a number of destinations. This
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highlights the importance to target the correct market. The Netherlands Development Organisation (SNV) (2009:4) identified another problem that tourism businesses and entrepreneurs in developing countries face, namely their lack of accurate data and analysis which are necessary in order to compete internationally. Various tourism businesses therefore have been advised over the years on how to formulate the correct marketing strategy. However a true marketing strategy has not come to pass. Also, when some model or plan does emerge, it is all too often abandoned after the first setback (Inkson & Minnaert, 2012:343; Uys, 2003:3). It is for these reasons that the Latin American tourists profile and motivation for travelling to South Africa needs to be established through the process of market segmentation.
This chapter discusses the research process that was applied in this study. First a background to the study will be given, followed by a discussion of the problem statement, the goals and objectives of the study, the research methodology and definitions of key concepts. The chapter concludes with a classification of the chapters and content to follow.
1.2 BACKGROUND OF THE STUDY
In order to profile a market successfully, the concept of profiling needs to be understood and reviewed. The origin of profiling needs to be explored as well as its development through the process of market segmentation. Furthermore, the market to which it is applicable has to be explored and reviewed. Thus, market segmentation as a tool of profiling and Latin America as the market segment to be profiled will be briefly discussed in the next sub-sections.
Market segmentation as a profiling tool
Tourism businesses do not have many resources at their disposal to spend on marketing. Therefore it is very important that the resources spent on marketing are used to get the maximum return in terms of exposure to the target market (SNV, 2009:110). According to Uys (2003:3) key concerns for destination marketing organisations are to select the correct target market and to allocate the correct promotional effort to it. Kotler and Keller (2009:253) agree and state that companies/destinations need to communicate their message through to the market in a persuasive way and therefore need to adapt to their target market’s needs, wants and values. However, the means to find a way to reach the customers in each needs-based segment is not always an easy task and hence the importance of market segmentation. Market segmentation is defined as the process of (1) grouping existing and potential visitors with similar preferences into groups called market segments, (2) selecting the most promising as target markets and (3) designing marketing mixes that satisfy the special needs, desires and behaviours of the constantly changing target market (Simpson, 2005:242; McDonald & Dunbar, 1995:10; Kotler & Armstrong, 2005:54; Baines, Fill & Page, 2013:186). Researchers
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such as McDonald and Dunbar (2012:33; 2010:15), Saayman (2001:88), Kotler and Armstrong (2005:185), Slabbert (2006:86; 2002:19), Simpson (2005:243) and Dolnicar (2008:141) have identified various steps in the market segmentation process which are outlined in Figure 1.1. These steps are used to profile the target market.
Figure 1.1: Steps in the market segmentation process
Source: Adapted fromMcDonald and Dunbar (2012:33; 2010:15); Saayman (2001:88); Kotler and Armstrong (2005:185); Slabbert (2006:86; 2002:19); Simpson (2005:243) and Dolnicar (2008:141)
Segmentation can answer relative questions about spending patterns, price sensitivity, potential markets, and response to changes in the markets, loyalty and the potential effectiveness of promotion (Saayman & Kruger, 2012:1; McDonald & Dunbar, 2012:34; Getz, 1997:260). It is important to understand the product or service from the tourists’ perspective. This means to understand the tourists’ intentions and reasons for purchasing the products or service of the company rather than those of the competitor. Therefore destinations and companies need to analyse the market by means of a market analysis in order to determine the tourists’ or customers’ behaviour (McDonald & Dunbar, 2012:34; Slabbert, 2002:20; Saayman, 2001:88). It is important for the success of any market segmentation project to use a number of profiling attributes early on the process. The segments (clusters) to be profiled are distinguished in terms of, in the case of this study, tourists from Latin America’s attitudes, behaviour, demographic, psychographic and media patterns. Each segment is named based on its dominant characteristic. According to Drummond, Ensor and Ashford (2008:57) profiling is used to identify the customer or consumer. However, this is not necessarily linked to or predictive of each consumer’s individual behaviour. For this reason, profiling can be defined as the “act of using data to describe or profile a group of customers or prospects” (Scridon, 2008:175; McDonald & Dunbar, 2012:151). There are three main types of information needed for profiling: 1. Analyse existing information 2. Identify markets to be segmented 3. Identify/apply segmentation bases 4. Identify/apply methods for deriving segments 5. Evaluate target segments 6. Select target segments 7. Target market strategies 8. Design an appropraite marketing mix 9. Positioning process
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Market data: size, trends, listing of products, brands, and structure; Tourists: who, what, when, where, how they use the service/product; and Segments: what segments exists (Slabbert, 2006:87; 2002:20).
First of all, the market has to be divided into distinct groups. Only then the company/destination will identify different ways of segmentation and develop profiles of the market. This in turn helps to narrow and eliminate unwanted and unimportant groups (Slabbert, 2002:26; Bowen, 1998:289). According to Saayman (2001:88), Swarbrooke and Horner (2007:83), the market identified can be subdivided and profiled into five different segmentation bases through the process of market segmentation namely: geographical segmentation, socio-economic segmentation, demographic segmentation, psychographic segmentation, product sought and product related segments. A detailed discussion on the application of these bases follows in Chapter 2. Profiling through market segmentation requires insight into the relevant market for implementation. However, not much research has been done regarding the Latin American tourists’ profile, travel behaviour and motivation especially to South Africa. The following section discusses the existing data on Latin American tourists briefly.
An analysis of the Latin American market
According to the forecast study of the UNWTO (2000:48), there will be an estimated 232 million outbound travels generated from the Americas region in the year 2020. This will represent an annual increase of 3.1% which is lower than the international average of 4.1%. Nonetheless, it is foreseen that East Asia and the Pacific, Middle East, Africa and South Asia will record a growth rate between 2.4% and 1.5% above the world average from Latin America. According to the UNWTO (2000:58), outbound growth from the South America sub region is the highest in the Americas region (4.5% growth per year), representing a growing middle class within the region which is experiencing a higher disposable income. As indicated in Table 1.1, long-haul destinations are expected to show the highest growth rates, with Africa recording a 6.9% growth rate, with Southern Africa in particular revealing a growth rate of 8.8%. This then supports Wilderness Safaris’ outlook on the market and its potential for growth.
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Table 1.1: UNWTO forecast for outbound tourism from South America
Arrivals (000) Growth Rate (% p.a.) Base year 1995 Forecast 2000 2010 2020 Overall 1995-2020 2000-2010 2010-2020 Africa 45.2 62.5 125.6 242.2 6.9 7.2 6.8 North 12.8 15.0 20.1 27.0 3.0 3.0 3.0 West 8.7 11.2 15.1 20.3 3.4 3.0 3.0 East 0.5 0.6 1.2 2.2 5.9 7.0 6.5 Southern 23.2 35.7 89.3 192.7 8.8 9.6 8.0 Source: Adapted from UNWTO (2000:58)
Following the forecast of the UNWTO, Tourism Research Australia has done a similar study on Latin American tourists that focused on visits to Australia for the short term in 2011. According to Tourism Research Australia (2012:5), the Latin American market is a small but growing market for Australia. Since 1986, visitor arrivals have increased at an annual rate of 10% which is much higher than the 6% growth of all visitors to Australia. Tourism Research Australia (2012:5) has identified the following important aspects for growth in travel to Australia from Latin America with regard to the current profile of travellers from the region:
Holiday and education were the most common purpose for visiting Australia over the past 25 years;
Brazil was identified as the leading inbound market to Australia and has increased its market share from 21% to 42% between 1986 and 2011. Chile was the second largest with a 15% share in the market to Australia; and
Latin American visitors have a different travel profile compared to that of all other visitors to Australia. It was found that they have a younger age profile and are more likely unaccompanied travellers with a much longer average length of stay and higher average spend per trip.
Other than the aforementioned data from Tourism Research Australia, not much is known on the profile of Latin American tourists especially those travelling to South Africa and to Wilderness Safaris specifically. In this regard, market segmentation can help in ascertaining the Latin American tourists’ profile. As per the UNWTO (2007:3), Bennet and Strydom (2001:64), Dibb and Simkin (2001:610), Slabbert (2002:17) and Saayman (2001:85) this process includes various benefits among which are to position the destination or country’s
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products to best meet the target market’s needs, to understand the specific market better; and also allows for media choices to be made more cost-effectively. Additional benefits of applying market segmentation to profile Latin American tourists include the following:
Segmentation will allow Wilderness Safaris and South Africa to focus on the tourists’ need, thereby achieving a greater degree of satisfaction because the market is designed to satisfy these needs, demands and preferences;
Gaps within the market can be identified which will lead to the development of niche markets where Wilderness Safaris and South Africa can meet most of the Latin American tourists’ needs in that specific segment and develop a reputation for delivering excellent services and products;
Segmentation leads to resource allocation and concentration for Wilderness Safaris and South Africa where the returns are the greatest;
Segmentation can give to Wilderness Safaris and South Africa a competitive advantage. Exploring specific segments of the Latin American market, rather than the entire market, one can easily detect emerging trends and potential problems;
Market segmentation leads to the promotion of new products and ideas from Wilderness Safaris and South Africa to the Latin American market;
Wilderness Safaris and South Africa will design more responsive products, packages and services to meet the needs of the Latin American tourist;
Marketing opportunities can be identified while sales can be increased through market penetration. This can be achieved when Wilderness Safaris and South Africa implement a well organised, aggressive and targeted promotional campaign;
Segmentation is important in terms of pricing decisions and will aid Wilderness Safaris in determining correct package prices for the Latin American region;
The process will assist in determining Wilderness Safaris and South Africa’s position, i.e. how the tourist and competition in the market view South Africa as destination and Wilderness Safaris as a company; Wilderness Safaris can form long term relationships with the Latin American region and in particular with the outbound tour operators within that region; and
Market segmentation can lead to the development of a cost-effective and tailor-made marketing strategy for the Latin American region.
Moreover, profiling for this specific market through the process of market segmentation is important and cannot be ignored as very limited data is available on the Latin American tourist travelling to South Africa and to Wilderness Safaris.
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1.3 PROBLEM STATEMENT
The World Bank (2013) warned that growth from developed countries was expected to slow down drastically which in turn will lead to less travel to developing countries such as South Africa. These developed economies which include the USA, Europe and Australasia are Wilderness Safaris’ main sales markets. Thus, Wilderness Safaris has placed emphasis on the need to identify new markets to offset this slowdown of influx. One of the markets identified for potential growth was Latin America. Wilderness Safaris has identified growth potential in this market. However, to date and to the authors’ knowledge, not much research has been done on this market and specifically the profile and travel motives of Latin American tourists’ travelling to South Africa and specifically to Wilderness Safaris. This research was executed to answer questions with regard to the Latin American market to assist Wilderness Safaris in growing their market further. The research questions that were addressed are:
Who are the Latin American tourists that travel to South Africa (demographic profile)? What are Latin American tourists’ motives for choosing South Africa as a travel
destination?
What are their needs and preferences when choosing a holiday (destination)?
Why do tourists choose Wilderness Safaris as their inbound operator to South Africa? Taking the above questions into consideration, the main research question this research addressed is:
What is the profile of Latin American tourists that travel to South Africa and Wilderness Safaris?
1.4 GOAL OF THE STUDY
Goal
To profile Latin American tourists that travel to South Africa and specifically to Wilderness Safaris.
Objectives
The achievement of the overall goal relies on the following objectives.
Objective 1
To analyse marketing and market segmentation especially in an ecotourism context by means of a literature review.
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Objective 2
To critically analyse Latin America as global travel market in comparison to international tourism trends to South Africa with regard to their profiles, needs, motives and travel behaviour by means of a literature analysis.
Objective 3
To apply an empirical survey to assess Latin American tourists’ profile and motivation to travel to South Africa and Wilderness Safaris as well as to determine their use of an operator against the profiling.
Objective 4
To draw conclusions regarding the profile and motives of the Latin American tourists that travel to South Africa and Wilderness Safaris.
1.5 METHODOLOGY
This research includes a literature study and empirical survey that was executed through an online questionnaire.
Literature study
Specific key words were used in the qualitative literature study namely: profiling, market
segmentation, marketing, Wilderness Safaris and Latin America. The theoretical framework
of marketing strategies and market segmentation was investigated. This was done by analysing journal articles, newspaper articles, books, theses, dissertations, market segmentation and other tourism related literature. Searches were conducted mainly in indexes of books and library catalogues, as well as on the Internet through the use of databases such as Google Scholar. Through the utilisation of these various sources a complete analysis of the profile and motives of Latin American tourists that travel to South Africa were done. Since an intensive literature study and empirical survey (by means of an online questionnaire) were applied, this research incorporates both primary and secondary sources.
Empirical survey
An empirical survey was applied through an online questionnaire. The following sub-sections give a description of the research design, data gathering and analysis.
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1.5.2.1 Research design and method of data collection
This study applied a quantitative research approach through the use of descriptive research. Primary data was collected through existing sources on the topic. Furthermore, primary data on problem specific information was gathered through computer-assisted catalogues. Descriptive research studies are constructed to determine answers to who, what, when, where and how questions (Tustin, Martins, van Wyk & Ligthelm, 2005:86). Typical descriptive approaches include in-house personal interviews, land line telephone interviewing, regular mail surveys and online qualitative surveys (Tustin et al. 2005:86). According to Tustin et al. (2005:89) and Bruner, James and Hensel (2005:931), quantitative research involves the gathering of primary data from a large number of individuals from a population. The findings then can be used through mathematical or statistical processing to produce a broad representation of the total population. This can then be used to forecast future events under various conditions. Table 1.2 below indicates various dimensions of a quantitative study. In the below approach the researcher is interested in the profile of Latin American tourists that travel to South Africa and Wilderness Safaris.
Table 1.2: Dimensions of quantitative research
Dimension Quantitative research
Types of questions Limited probing
Sample size Large
Information per respondent Varies
Administration Fewer special skills required Type of analysis Statistical, summaries
Hardware Questionnaires, computers, printouts Ability to replicate High
Researcher training Statistical, decision models, decision support systems, computer programming, marketing, marketing research Type of research Descriptive or causal
Source: Adapted from Tustin et al. (2005:90) and Bruner et al. (2005:931)
1.5.2.2 Sampling method and survey
Descriptive research was used in conducting this research, as well as quantitative methods in the process of collecting data. The survey followed a simple random sample technique. This means that tour operators were sourced from central sales databases (QlikView® and Tourplan®) at Wilderness Safaris. The surveys consisted of an online questionnaire designed in Adobe® FormsCentral. Online questionnaires were sent to the various outbound operators
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who closely work with Wilderness Safaris within the Latin American region. These tour operators were requested to send the questionnaire to the respondents for completion. Respondents were selected on the basis of their past travel behaviour to South Africa and to Wilderness Safaris or their future planning to travel to these destinations. Non-probability sampling was implemented where the respondents were requested to send the online questionnaire to acquaintances or friends that have done the same. Respondents were briefed in an email beforehand on the reason for the study. This was to ensure that their participation was voluntary. To be sure to obtain enough responses for the research to be valid and credible, Krejcie and Morgan (1970:608) developed the following formula in order to determine the questionnaire sample size:
s = X ²NP(1− P) ÷ d² (N −1) + X²P(1− P).
S = Required sample size
X² = The table value of chi-square for 1 degree of freedom at the desired confidence level (3.841)
N = Population size
P = Population proportion (assumed to be 0.50 since this would provide the maximum sample size).
D = The degree of accuracy expressed as proportion (0.05).
In the 2013 financial year (01 March 2012 to 28 February 2013), 250 Latin American tourists travelled to South Africa through Wilderness Safaris. Based on the formula and table of Krejcie and Morgan (1970:608-609), the questionnaire sample size had to be at least 152 questionnaires. However, to further enhance the precision of the study, the minimum sample size was increased to 200 questionnaires. The questionnaires were continuously sent out from July 2014 to May 2015. A total of 195 completed questionnaires were returned, thus validating the sample.
1.5.2.3 Structuring of the questionnaire
The questionnaire (see Appendix A) was divided into four sections. Section A consisted of the socio-demographic profile questions of Latin American tourists and included questions on age, gender, marital status, home language, country of residence and highest level of education. Section B consisted of questions on the Latin American consumer profile namely on the influences for tourists choosing a certain destination and/or service above others, when they decided to travel, who initiated the travel, which other destinations are considered for travelling to as well as which they have travelled to before, how many times they travel during a year,
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expenditure during travel, and which accommodation, activities and packages they chose or will choose during their stay. Section C made use of a Likert scale to determine the main motivational factors of why Latin American tourists chose to travel to South Africa. According to Tustin et al. (2005:408) the Likert scale represents a systematic and refined method of forming indexes from questionnaire data. The scale consists of a series of statements either in favour of or with an unfavourable attitude towards the question. The Likert scale was adapted as follows for the purpose of this research: 1 = totally disagree; 2 = disagree; 3 = neutral; 4 = agree and 5 = completely agree. These items were adapted from the work done by UNWTO (2013), Tourism Research Australia (2012), Du Plessis (2002) and Uys (2003). In section D the tourists who already travelled to South Africa with Wilderness Safaris were asked to answer consumer driven questions. These questions were which Latin American tour operator/agent they used to book their travel, why they chose that specific agency, if they have heard of Wilderness Safaris and if so where they heard about the company as well as their general impression of Wilderness Safaris and why they chose the company above other operators in South Africa/Africa.
1.5.2.4 Data analysis
Data was exported from Adobe® FormsCentral to Microsoft© Excel© and IBM SPSS (Statistical Package for Social Sciences) software was used for basic data analysis. Statistical services at the North-West University Potchefstroom Campus, assisted in the processing of the data. Data analysis involved the initial data analysis (descriptive statistics) and focussed on the demographic profile of the Latin American tourists visiting South Africa to identify the main travel motives of these tourists that travel to South Africa. Using SPSS, two factor analyses were carried out to identify the main motives of the respondents as well as to determine their reason for preferring Wilderness Safaris as a tour operator. According to Tustin
et al. (2005:668), a factor analysis is used to “find latent variables or factors among observed
variables”. This means that if data contains many variables, factor analysis is used to reduce the number of variables. With factor analysis a small amount of factors can be produced from a large amount of variables. This in turn can explain the observed variance of the larger amount of variables. To segment and profile the Latin American market to South Africa, respondents were clustered according to the identified motives. To the researchers’ knowledge, this was the first time that this potential tourist market was analysed regarding their profile and motives to travel to a developing country such as South Africa. This information is invaluable in designing a marketing strategy to expand this, to date, undervalued market. Furthermore, the factors that were identified in the factor analyses were used in an analysis of variance (ANOVA) and independent T-tests together with Spearman’s Rank Order Correlations. All of these were applied to determine the influence of socio-demographic characteristics on the travel motives
